TCRLA_Public/021017.mbx        T R O U B L E D   C O M P A N Y   R E P O R T E R

                   L A T I N   A M E R I C A

           Thursday, October 17, 2002, Vol. 3, Issue 206



BLADEX: 3Q Overshadowed by YTD Loss; Plans Recapitalization
IMAGEN SATELITAL: Claxson Increases Terms, Amends Exchange Offer
* World Bank Extends Argentina Three-Year Grace Period


TYCO INTERNATIONAL: Auditor Not Included In Criminal Suit


BANCO ITAU: Merrill Cuts Recommendation On Election Concerns
CSN: Doubts Mount Over Corus Merger
FIAT: Fidis Finance Division To Be Sold Soon


ENERSIS: Hiring Advisor To Plan Sales
MADECO: Equity Issue Fails, Outlook Worsens


CMS ENERGY: Sells Colombian Drilling Rights To Cepsa


AEROMEXICO: Hospital Consortium Confirms Purchase Interest

T R I N I D A D   &   T O B A G O

BWIA: Restructuring Proposal Presented to Staff


GALICIA URUGUAY: Restarting Operations After Intervention

     - - - - - - - - - -


BLADEX: 3Q Overshadowed by YTD Loss; Plans Recapitalization
Banco Latinoamericano de Exportaciones, S.A. (NYSE: BLX)
("BLADEX" or the "Bank"), a specialized multinational bank
established to finance trade in the Latin American and Caribbean
region, reported Tuesday results for the third quarter ended
September 30, 2002.  The Bank reported net income for the third
quarter of 2002 of $15.8 million, or $0.90 per share, compared
with net income of $18.9 million, or $1.05 per share, reported in
the third quarter of 2001. Net loss for the first nine months of
2002 was $283.8 million, compared with net income of $79.2
million reported for the same period of 2001.  Losses per common
share were $16.41 for the first nine months of 2002, compared
with earnings per common share after preferred dividends of $4.27
during the same period in 2001.
Commenting on the latest quarterly results, Jose Castaneda, chief
executive officer of BLADEX, said, "In an operating environment
that was even more difficult than we had anticipated three months
ago, we are pleased to report that we have accomplished our
stated objective of returning BLADEX to profitability.  Our net
income of $15.8 million exceeded the forecast made at the end of
the second quarter. While this result was 16% below the levels
reported for the same quarter last year, it is notable that our
results in the latest quarter, which included some one-time
items, were achieved with a balance sheet 46% smaller than last
year.  The 21% return on equity achieved during the quarter is
also worth noting.

"Our profitability, re-capitalization plan and asset quality,
with the exception of the largely unchanged impaired portfolio in
Argentina, are all moving in the right direction.  We are
concerned, however, about the increasingly scarce availability of
inter-bank lending to the region.  The dramatic increase in the
risk perception of Latin America in recent months has cut
available credit lines to the region by as much as 50% according
to some sources and, most worrying, the trend continues unabated.
Banks in both the US and Europe, the traditional sources of
credit facilities in Latin America are being impacted by two
significant forces: first, many of these institutions are facing
credit, trading, and/or profitability difficulties in their home
markets, which are forcing them to focus their resources on the
defense of their core franchises; second, under these
circumstances, banks have turned particularly risk adverse. Latin
America is, at the moment, being perceived as an uncertain
market, with the result that credit facilities are being cut
across the board.

"This environment is forcing BLADEX to reduce its balance sheet
to levels below what technical considerations alone would have
dictated.  Profitability, however, has been maintained because
increased lending margins and cost reductions have compensated
for some of the reduction in loan volume.  Still, BLADEX is today
a smaller institution operating in a smaller market. This
situation is not likely to change materially until BLADEX
completes its re- capitalization and the uncertainties prevailing
in the international markets and in Latin America abate.

"It is important for investors and shareholders to realize that,
while BLADEX is currently smaller than it has been in recent
years, our relative strength and the opportunities to do good
trade finance business are greater than at any recent time.  As
many of our competitors have exited the region, BLADEX's share of
this smaller market has increased substantially. Most
importantly, we have retained our clients, kept our highly
efficient processing capacity intact, and are working to have new
products ready to bring to the market once growth resumes.  When
circumstances change, as they inevitably will, we believe BLADEX
will be positioned to resume its growth rapidly and ahead of its

"Regarding the all-important management of our liquidity
position, at the end of the quarter, our cash balances of $487
million represented 86% of deposits. Importantly, the cumulative
maturity gap for the next six months is positive. The Bank's
orderly reduction of its balance sheet by approximately $2.6
billion in the last nine months reflects the matched nature of
its asset and liability structure, as well as the high quality
and liquid nature of its loan portfolio outside Argentina.

"Our efforts to mitigate risk have been successful as evidenced
by the improvement in credit reserves and impairment loss
coverage ratios.  In Argentina, reserve coverage is now 51.6% and
our credit balances, net of reserves and impairment losses,
declined to $462 million.  Since the end of the third quarter,
our exposure in the country has been reduced by an additional $22
million.  Furthermore, we are encouraged by our ability to
strengthen the support behind some of our larger exposures in
that country. In the rest of our portfolio, our credit reserve
coverage was 3.2% at the end of the quarter, compared to 2.6% at
June 30, 2002.

"Regarding the next quarter, all other things being equal, we
would again be looking for a target of $10 million in operating
profits. We currently foresee no need for additional provisions,
but remain concerned about volatility in the value of our
investment portfolio in Argentina, as well as by the volatility
inherent in our interest income flow from the country.

"BLADEX is proceeding with its plan to raise at least $100
million in additional tier one capital within the next several
months and has made substantial progress with a Core Group of
Class A and B shareholders, as well as with multi-lateral
organizations, some of which have already approved commitments to
provide equity capital.  While BLADEX hopes to obtain commitments
from the rest of the Core Group during the fourth quarter, there
is no assurance that it will be able to do so, or that needed
equity capital ultimately will be raised.  Prior to any sale of
shares to the Core Group, BLADEX will offer the same shares to
its existing shareholders in a pro-rata Rights Offering.  This
will satisfy the pre-emptive rights held by Class A and B
shareholders, and will provide pre-emptive rights to Class E
shareholders even though they do not have them under BLADEX's
Articles of Incorporation. Although a final decision regarding
pricing has not yet been made, BLADEX currently expects that it
will be necessary to offer shares in the Rights Offering and
later to the Core Group, at a price equal to or near the market
price of the Class E shares at the end of the Rights Offering
subscription period.  At the current market price of the Class E
shares, this would result in a substantial reduction in BLADEX's
per share book value, and shareholders wishing to avoid
considerable per share book value dilution would need to
subscribe for shares in the Rights Offering.  In order to have
sufficient authorized but unissued shares to raise the needed
equity capital, BLADEX is seeking shareholder approval to
increase its authorized common shares from70 million to 185
million.  A proposed amendment to BLADEX's Articles of
Incorporation making this change will be voted on by shareholders
at a special meeting called for November 18, 2002.  A proxy
statement regarding that meeting is expected to be mailed to
shareholders on October 18, 2002.

"It is reasonable to ask why BLADEX has chosen to re-capitalize
now, when its share price has deteriorated to levels not seen in
the past. First, it is imperative to understand that the Bank
needs to raise additional capital in order to preserve its unique
business franchise and to resume growth once conditions in the
market improve.  Second, additional capital and the explicit
support from shareholders will not only strengthen our balance
sheet, but will also enhance our capacity to access funding from
depositors, creditors and the debt markets.  Third, given the
volatility in our business environment, BLADEX's Board and
management are of the belief that the Bank must operate with a
Tier 1 capital ratio of at least 15% (vs. 12% currently) and that
it is neither prudent nor convenient from a business perspective
to wait to achieve this ratio through retained earnings. Lastly,
while there is no assurance that the new capital will guarantee
the preservation of our investment grade rating, the rating
agencies have made it clear that, without it, we would be
downgraded.  In the current environment, the loss of our
investment grade rating would impair our ability to obtain new

"It is also reasonable to ask why the Bank is seeking additional
Tier 1 capital. Tier 1 (common stock equity) is the strongest
form of capital and is what our creditors and rating agencies
expect. Because of the region's history of volatility, both our
creditors and rating agencies assume, expect and require high
levels of such equity capital," Mr. Castaneda concluded.

The following table sets forth the condensed income statements
for the third quarter and first nine months of 2001, as well as
for the second and third quarters, and first nine months of 2002:

(In $ millions)
                    9M01       9M02     IIIQ01     IIQ02  IIIQ02
Operating net interest
  income            49.2      43.1       17.0      15.0    11.3
Effect of interest rate
  gap               12.3       6.9        3.6       1.6     0.9
Interest incomeon
  available capital
  funds             29.3      11.6        8.0       3.9     3.9
Net interest
  Income (1)        90.8      61.6       28.6      20.5    16.1
Net commission and other
  income            15.5       5.8        5.0       2.0     1.1
Gain on extinguishment
  of debt            0.0       1.4        0.0       0.0     1.4
Derivatives and hedging
  activities (2)     1.9       0.0       -3.7      -4.3     4.6
Net revenues       108.1      68.9       29.9      18.2    23.2
  expenses (3)     -18.5     -16.2       -7.0      -5.8    -5.1
Net income before loss on
  disposal of business
  segment, reversal of unpaid
  interest accrued on
  non-accruing loans and
  adjustments, provision for
  credit losses and impairment
  loss on securities, provision
  for income tax, and cumulative
  effect of accounting
  change            89.6      52.7        22.9     12.4    18.1
Loss on disposal of
  business segment- BLADEX
Securities, LLC (4)  0.0      -1.5         0.0     -1.5     0.0
Reversals of unpaid
Interest accrued on
  non-accruing loans and
  adjustments (5)    0.0     -10.8         0.0     -9.1     0.0
Provision for possible
  credit losses, and
  impairment loss on
  securities       -11.5    -324.2        -4.0   -302.0    -2.3
Provision for
  income tax        -0.0      -0.0        -0.0     -0.0    -0.0
Cumulative effect of
  accounting change  1.1       0.0         0.0      0.0     0.0
Net income          79.2    -283.8        18.9   -300.1    15.8

(1) Excludes $0.2 million and $9.1 million reversals of interest
accrued on Argentine loans placed on non-accrual status in IQ02
and IIQ02, respectively.

(2) Represents the impact of the fair value adjustment of credit
put options which were exercised in IIIQ02 and the fair value of
interest rate swaps (SFAS 133).

(3) Includes $0.9 million of severance costs at BLADEX's head
office in the first half of 2002.

(4) Represents $1.5 million in severance costs related to the
closing of the structured finance unit in New York.

(5) Includes reversals of interest accrued on Argentine loans
placed on non-accrual status of $9.3 million in the first six
months of 2002.

BLADEX, with $3.3 billion in assets, is a specialized
multinational bank established to finance trade in the Latin
American and Caribbean region.  Its shareholders include central
banks from 23 countries in the region and 147 commercial banks
(from the region, as well as international banks) and private
investors.  Its mission is to channel funds for the development
of Latin America and the Caribbean, and to provide integrated
solutions for the promotion of the region's exports.  BLADEX is
listed on the New York Stock Exchange.  

Further investor information can be found at

    BLADEX, Head Office,
    Calle 50 y Aquilino de la Guardia,
    Panama City, Panama,
    Attention: Carlos Yap, Senior VP, Finance & Performance Mgt
    Tel. No. (507) 210-8581, E-mail:


    The Galvin Partnership
    67 Mason Street, Greenwich , CT 06830
    Attention: William W. Galvin
    Tel. No. (203) 618-9800,

IMAGEN SATELITAL: Claxson Increases Terms, Amends Exchange Offer
Claxson Interactive Group Inc. ("Claxson" or the "Company")
announced the extension and the amendment of its pending exchange
offer and consent solicitation (the "Exchange Offer") for all
U.S. $80 million outstanding principal amount of the 11% Senior
Notes due 2005 (144A Global CUSIP No. 44545HHA0 and Reg S Global
ISIN No. USP52800AA04) (the "Old Notes") of its subsidiary,
Imagen Satelital S.A. ("Imagen").

Claxson is now offering U.S. $555 in principal amount of its
Senior Notes due 2010 (the "New Notes") in exchange for each U.S.
$1,000 principal amount of Old Notes.  The Company has also
increased the consent payment to U.S. $30.00 per U.S. $1,000
principal amount of Old Notes payable to all holders who tender
their Old Notes on or prior to the new expiration date.  The
Supplement to the Offering Memorandum dated October 15, 2002,
relating to the Exchange Offer contains a full description of the
amendments to the terms of the Exchange Offer.  Any holder who
has previously tendered their Old Notes will automatically be
eligible to receive all of the new and improved terms of the
Exchange Offer.

The new terms of the Exchange Offer are the final result of
active negotiations with holders over the past couple of
months.  The Company is pleased to report that it has reached an
agreement on the economic terms with a group of non-tendering
holders who represent approximately 80% of the outstanding
principal amount of the Old Notes. Accordingly the Company has
increased the minimum participation to 93% from 66-2/3%.  Based
on the agreement reached with these holders, and including the
16% that had previously been tendered, the Company expects to
reach the new minimum participation.

The expiration date for the Exchange Offer has been extended from
5:00 p.m. New York City time on October 11, 2002 to 5:00 p.m. New
York City time on October 28, 2002.  As of 5:00 p.m. New York
City time on October 11, 2002, Claxson received tenders from
holders of approximately U.S. $12.8 million in aggregate
principal amount of the Old Notes.

Informational documents relating to the Exchange Offer will only
be distributed to eligible investors who complete and return an
eligibility letter.  If you would like to receive this
eligibility letter, please contact Tom Long at D.F. King & Co.,
the Information Agent for the Exchange Offer, at +(1) 212-493-
6920, or Eduardo Rodriguez Sapey at Banco Rio de la Plata, the
Trustee and Rep. Exchange Agent in Buenos Aires, Argentina at
+(54) 11-4341-1013.

The New Notes will not be registered under the U.S. Securities
Act of 1933, as amended, and will only be offered in the United
States to qualified institutional buyers and accredited investors
in private transactions and to persons outside the United States
in off-shore transactions.  The New Notes may be listed on the
Buenos Aires Stock Exchange.

This press release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of,
the new notes in any state of the United States in which such
offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of any
such state.

Claxson (Nasdaq: XSON) is a multimedia company providing branded
entertainment content targeted to Spanish and Portuguese speakers
around the world.  Claxson has a portfolio of popular
entertainment brands that are distributed over multiple platforms
through Claxson's assets in pay television, broadcast television,
radio and the Internet.  Claxson was formed in a merger
transaction, which combined media assets contributed by El Sitio,
Inc., and other media assets contributed by funds affiliated with
Hicks, Muse, Tate & Furst Inc. and members of the Cisneros Group
of Companies. Headquartered in Buenos Aires, Argentina, and Miami
Beach, Florida, Claxson has a presence in all key Ibero-American
countries, including without limitation, Argentina, Chile,
Brazil, Spain, Portugal and the United States.

This press release contains forward-looking statements within the
meaning of the "safe harbor" provisions of the U.S. Private
Securities Litigation Reform Act of 1995.  These statements are
based on the current expectations or beliefs of Claxson's
management and are subject to a number of factors and
uncertainties that could cause actual results to differ
materially from those described in the forward-looking
statements.  For a detailed discussion of these factors and other
cautionary statements, please refer to Claxson's registration
statement on Form 20F filed with the U.S. Securities and Exchange
Commission on June 27, 2002.

          Media: Alfredo Richard, SVP, Communications
          Investors: Ezequiel Paz, AVP, Corporate Finance
          Web site:

* World Bank Extends Argentina Three-Year Grace Period
The World Bank paid US$250 million under its guarantee of the
Series D Zero Coupon Notes issued by the Republic of Argentina
and due October 15, 2002. The payment marks the first time the
bank ever had to subsidize bonds it guaranteed.

Argentina now has 60 days to make the payment to ensure the
guarantee rolls to the remaining two tranches of the $1.5 billion
bond, reports Reuters. The government of Argentina had said that
they would reimburse the bank within the 60-day period.

If Argentina fails to pay the bank by that time, it will be given
three years to gather the amount needed to pay the bank, but the
World Bank would not be guaranteeing the other tranches of the
bond, which has a CCC+ rating from Standard and Poor's. A ratings
downgrade on the bonds would most likely follow.

"Following the Republic's request to the World Bank to extend
terms for reimbursement due to Argentina's financial liquidity
constraints and severe social crisis, (the bank) has decided to
direct that (Argentina) reimburse the World Bank in four equal
semi-annual installments commencing on October 15, 2005," the
bank said.

The interest would be payable semi-annually at Libor (London
Interbank Offered Rate) plus four percent. The Argentine economy
crisis has caused a default on many of its bonds held by private

Argentina has been trying to reach an agreement with the
International Monetary Fund. The government said that the country
needs a new aid package to cover upcoming payments due to other
multilateral lenders.

Argentina was due to repay on Tuesday US$809 million to the bank
on regular loans. However, the country has decided to utilize the
30-day grace period provided for the scheduled loans.


TYCO INTERNATIONAL: Auditor Not Included In Criminal Suit
A spokesman for PricewaterhouseCoopers (PwC), the auditor for
Tyco International Ltd, said that the company has received an
assurance that no criminal charges will be filed against them in
connection with the alleged crimes commited by Tyco's former

David Nestor was quoted by Knight Ridder Business News saying
that the company have been in contact with the Manhattan district
attorney's office and have been assured that the office does not
intend to seek indictment against the auditing firm.

Individual auditors from PwC were subjected to interrogation
following the investigation on the corporate scandal that hit
Tyco. The interrogation was done to find out if the auditors
should have released a proxy statement revealing that US$32
million bonus paid to Tyco's former CEO Dennis Kozlowski.

Kozlowski, and Tyco's former finance chief Mark Swartz face
charges of grand larceny and enterprise corruption. Both pleaded
not guilty, and are out on bail.

John Moscow, the lead prosecutor in the Tyco case gave Reuters
confirmation that his office has no intention of pressing charges
against PwC or any of their individual auditors as of the moment.

Moscow added, "The investigation is ongoing."

PwC is anxious to end rumors on their investigation and has fears
of being dragged down by the scandals Tyco is facing. A rival
auditing firm, Arthur Andersen has collapsed because of its
involvement in the Enron case.

The auditors faced criticism for failing to notice that Tyco had
used illegal accounting practices to boost its financial picture.
However, details of the deals done by Kozlowski and Swartz reveal
that they tricked PwC.

Tyco shares closed at $12.92 Tuesday, down 72 cents.

CONTACT: Tyco International Ltd.
         Corporate Office
         The Zurich Centre, Second Floor
         90 Pitts Bay Road
         Pembroke HM 08, Bermuda
         Phone: 441-292-8674
         Home Page:


BANCO ITAU: Merrill Cuts Recommendation On Election Concerns
Worry about the outcome of Brazil's elections prompted Merrill
Lynch to downgrade its equity recommendation on Brazilian bank
Banco Itau SA to "neutral" from "buy," says Dow Jones. Brazilian
shares have been punished for month by investors, who are getting
jittery about the global economy and the outcome of presidential
elections this October. Now voter opinion polls show that the
longtime frontrunner and leftist candidate Luiz Inacio Lula da
Silva is winning easily against the government-backed candidate
Jose Serra.

Merrill thinks Banco Itau will profit "handsomely" from its
investments in the third quarter, but the Brazilian bank also
holds a lot of worrisome government debt.

"We cannot ignore the market's concerns of (government) debt
restructuring risk, and in this alternative outcome, we believe
bank shares would offer poor shelter," Merrill said in a research

          Rua Boa Vista, 176
          01014-919 Sao Paulo, Brazil    
          Phone: +55-11-3247-3000
          Fax: +55-11-5582-1133

          Olavo Egydio Setubal, Chairman
          Roberto Egydio Setubal, President and CEO
          Henri Penchas, SVP Accounting & Control Area

CSN: Doubts Mount Over Corus Merger
The planned merger between British steel giant Corus Group Plc
and Brazil's CSN may take longer than previously expected to be
completed. Corus, Europe's second-largest steelmaker, which
agreed in July to buy CSN, Brazil's second-largest steel maker,
for US$4.2 billion in stock and assumed debt, originally
anticipated that the transaction to be completed by November.

However, the planned transaction is likely to be seriously
delayed by the country's presidential election. The results of
the vote are expected to bring the left-wing Luiz Inacio Lula da
Silva to power.

Lula, who won the first round of elections earlier this month and
faces a second round of voting on 27 October, has already said he
will replace Brazil's central bank president Arminio Fraga with
someone who understands "the subtleties of hunger and poverty".
He is expected to install similarly sympathetic directors at the
Brazilian state development bank, BNDES.

BNDES is in a powerful position to delay or block the merger, as
it is CSN's main creditor, and has lent US$1 billion to CSN's
parent company, the Vicunha Group.

One source in Brazil said: "If Vicunha Group folds, BNDES will
get control of CSN and I think they will try to sell it to
another Brazilian company. CSN is Vicunha Group's main cash cow,
so BNDES will take a close interest."

Corus and CSN will present BNDES with a business plan at the end
of this month, outlining merger benefits, but the bank is
unlikely to consider the proposals until March.

To see financial statements:

CONTACT:  Jose Marcos Treiger
          CSN - Investor Relations General Manager
          Tel. +55 21 2586 1442

          Isabel Viera
          Thomson Financial
          Tel. +1 (212) 701-1823

The AES Corporation (NYSE:AES) announced Tuesday that the Brazil
National Bank for Economic and Social Development (BNDES) has
agreed to defer until October 28, 2002 an $85 million payment due
by an AES subsidiary related to the acquisition of Eletropaulo
Metropolitana Electricidade de Sao Paulo S.A., the electric
distribution company for Sao Paulo, Brazil.

AES stated that its subsidiary is currently in discussions with
BNDES to reschedule payments due by its subsidiaries in respect
of Eletropaulo common and preferred shares, but there can be no
assurance that an agreement will be reached. As previously
reported, Eletropaulo is also in discussions with its lenders to
restructure its bank loans and other financial obligations.

"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: This news release may contain "forward-
looking statements" regarding The AES Corporation's business.
These statements are not historical facts, but statements that
involve risks and uncertainties. Actual results could differ
materially from those projected in these forward-looking
statements. For a discussion of such risks and uncertainties, see
"Risk Factors" in the Company's Annual Report or Form 10-K for
the most recently ended fiscal year.

AES is a leading global power company comprised of contract
generation, competitive supply, large utilities and growth
distribution businesses.

The company's generating assets include interests in 176
facilities totaling over 60 gigawatts of capacity, in 33
countries. AES's electricity distribution network sells over
108,000 gigawatt hours per year to over 16 million end-use

For more general information visit the company's web site at or contact investor relations at

CONTACT:          The AES Corporation
                  Kenneth R. Woodcock, 703/522-1315

Sao Paulo-based telco Telesp, a subsidiary of Spain's Telefonica,
lost in its appeal against a lower court order that authorizes
local electrical distribution company Eletropaulo Metropolitana
Eletricidade to increase the fees it charges Telesp for the use
of its distribution poles.

According to Brazilian financial daily Gazeta Mercantil, Brazil's
supreme court rejected Telesp's appeal. As a result, Telesp must
now pay BRL3/month per pole (US$0.78/month), compared to the
BRL0.12/pole fee charged since 1986, well before the telco was

Eletropaulo, whose Sao Paulo network comprises 900,000 such
poles, originally attempted to raise the fee two years ago, and
threatened to ban Telesp from using them unless it paid BRL5 per
pole. But the lower court set BRL3 per pole as a provisional rate
while the full hike is discussed.

Telesp has argued the two companies have always shared the
infrastructure and that in demanding such a high fee Eletropaulo
is abusing its power as the only infrastructure provider.

In response to the controversy, Eletropaulo said it is merely
bringing prices up to date.

          Avenida Alfredo Egidio de Souza Aranha 100-B,
          13 andar 04726-270 San Paulo
          Phone: +55-11-548-9461, +55 11 5696 3595
          Fax: +55-11-546-1933
          Luiz D. Travesso, Chairman and President
          Orestes Gonzalves Jr., VP Finance/Investor Relations

FIAT: Fidis Finance Division To Be Sold Soon
Italian automaker Fiat is in advanced talks to sell in the coming
weeks the Brazilian arm of its Fidis consumer car finance
business, according to The Financial Times. Sources familiar with
the talks said that potential bidders were expected to pay around
EUR100 million for Fidis' Brazilian operations.

Fiat is looking to sell Fidis as part of its pledge to sell more
than EUR2 billion in assets this year to raise cash, reduce debt
and cover losses at its car unit.

Fiat is also looking for a partner for its Brazilian financing
arm. Banco Fiat SA would be attractive to any of the big
Brazilian banks such as Banco Bradesco SA, Banco Itau SA or Uniao
de Bancos Brasileiros SA, said Erivelto Rodrigues, director of
Austin Asis, a banking consultancy in Sao Paulo.

In Brazil, where Fiat is the biggest maker of passenger cars, its
financing arm is the largest auto finance company and 26th
biggest bank with assets of BRL4.5 billion (US$1.4 billion),
according to central bank figures.


ENERSIS: Hiring Advisor To Plan Sales
Chilean power sector holding Enersis, which is trying to embark
on a divestment plan, is expected to contract a sale advisor by
the end of the month to assist the Company in the transaction.
Enersis S.A. recently revealed a plan to sell some of its assets
to help ease debts of US$10.8 billion. That sum includes a
US$1.4-billion loan payment to its parent, Spain's largest power
group, Endesa.

Under the plan, Enersis would sell its Rio Maipo distributor, the
Manso de Velasco real estate group and its 60% stake in the
Infraestructura 2000 group. Informal meetings have already been
held with potential buyers of Rio Maipo.

Enersis has also met with Chile's private pension funds (AFPs) to
discuss a capital increase of up to US$1.5 billion.

To see financial statements:

          Investor Relations:
          Ricardo Alvial
          Chief Investments & Risks Officer of Enersis
          Phone: (562) 353-4682

          Susana Rey,
          Ximena Rivas,
          Pablo Lanyi-Grunfeldt,

MADECO: Equity Issue Fails, Outlook Worsens
The future of Chilean copper wire and cable manufacturer Madeco
is getting bleaker after its US$90-million equity issue attempt
collapsed on Tuesday, relates Business News Americas. The
underwriter for the issue, Banco de Chile, is expected to return
those shares signed up for under the first stage of the process,
the main subscriber being Madeco's controlling group, Quinenco.

Quinenco agreed to acquire nearly all the roughly CLP37 billion
(about US$50mn) worth of shares taken up in the first stage of
the issue, which ended September 23 and which had a money-back
guarantee if a minimum of CLP47 billion was not raised by the end
of the process on Tuesday.

By the end of the pre-emptive rights period, which closed October
8, the equity issue had raised just CLP38 billion (roughly
US$51mn) and it appears that few, if any shares were signed up to
in the voluntary subscription period which followed.

Now pension fund bondholders are said to be demanding a more
drastic restructuring than previous management had planned.

Beyond cables, Madeco makes finished and semi-finished non-
ferrous products based on copper, aluminum, related alloys and
optical fiber as well as flexible packaging products for use in
the mass consumer market for food, snacks and cosmetics products.

Chile's Luksic family holds 56.5% of Madeco through Quinenco and
its subsidiaries.

To see latest financial statements:

          Ureta Cox, 930
          San Miguel, Santiago, Chile
          Phone: 56-2 5201461
          Fax: 56-2 5516413
          Home Page:
          Oscar Ruiz-Tagle Humeres, Chairman
          Albert Cussen Mackenna, Chief Executive Officer

          Investor Relations
          Phone: 56-2 5201380
          Fax:   56-2 5201545


          388 Greenwich St.
          New York, NY 10013
          Phone: 212-816-6000
          Fax: 212-793-9086
          Home Page:
          Michael A. Carpenter, Chairman and CEO
          Michael J. Day, EVP and Controller


CMS ENERGY: Sells Colombian Drilling Rights To Cepsa
CMS Energy recently sold its rights to drill in Colombia in order
to raise cash and cut debt. According to Bloomberg, CMS's
drilling rights in the Valle Medio del Magdalena area, 100
kilometers (62 miles) south of Bogota was sold to Compania
Espanola de Petroleos SA (Cepsa), Spain's second-biggest oil

Cepsa, says that the three adjacent blocks, known as Torbellino,
Abanico, and Espinal, may have reserves of 90 million barrels of

An agreement between Cepsa and the Colombian government provides
that Cepsa will drill a minimum of four wells and carry out a 3D
seismic survey within the next three years, reports Business News

A spokesman for Cepsa, who would not reveal the purchase price,
says that the acquisition is another step forward in the
company's strategy of strengthening its upstream activity.

Cepsa's share of the blocks' current output is about 1,700
barrels of oil equivalent per day.

         Suite 1100, Fairlane Plaza South
         330 Town Center Drive
         United States
         Tel  +1 313 436-9200
         Kenneth Whipple - Chairman & Chief Executive
         David W. Joos - President & Chief Operating Officer


AEROMEXICO: Hospital Consortium Confirms Purchase Interest
Olegario Vazquez, chairman of Mexico's Grupo Empresarial Angeles,
confirmed that hospital consortium's interest in buying
Aeromexico, relates EFE.

"Grupo Angeles has more interest in Aeromexico than in Mexicana.
When the tender opens, we'll be very interested because we may be
one of the strongest potential buyers," Vazquez said.

Aeromexico and Mexicana de Aviacion are Mexico's two largest
airlines. Both have been operated by Cintra, a government-
controlled holding company, since 1995 when the government seized
the companies during an
economic crisis.

Two years ago, federal antitrust regulators ruled that Aeromexico
and Mexicana de Aviacion should be split up and sold off
separately because they controlled 80% of the national airline

Vazquez said that, although Grupo Angeles was seeking to acquire
Aeromexico, the consortium would not participate "blindly" in the
bidding process.  He said he had no problem with Cintra being
sold to foreign investors, although he added that "Mexican
investors are interested."

Grupo Empresarial Angeles owns the Angeles chain of private
hospitals, 17 Mexican hotels and a stake in Grupo Aeroportuario
del Pacifico.

          Mayte Sera Weitzman of AeroMexico, +1-713-744-8446, or

          Adolfo Crespo, V.P. of Public Affairs
          Division of Mexicana Airlines, +1-210-491-9764

T R I N I D A D   &   T O B A G O

BWIA: Restructuring Proposal Presented to Staff
BWIA West Indies Airways Ltd. announced its restructuring plans
on October 7. The plan includes rationalizing the airline's
fleet, drafting new rules and other cost cutting measures. The
airline is trying to save US$1 million per month in operational
costs for the following months. The plan would enable the BWIA to
operate at lower costs, while getting relatively higher profits.

The airline's President and Chief Executive Officer Conrad Aleong
presented the outline to the staff, complete with details as to
how other profitable low-cost airlines have conducted their
business. The Barbados Advocate reports that Aleong reminded the
employees that the airline can be profitable without giving up
the schedule, safety or warm service that makes it special and
has won BWIA, for the third year in a row, "The Best Airline to
the Caribbean Award".

Most of BWIA's employees have offered favorable reactions to the
plan. In fact, they have offered the Company's executives their
suggestions on cost cutting.

CONTACTS:  BWIA West Indies Airways
           Phone: + 868 627 2942
           Home Page:
           Conrad Aleong, President and CEO (Trinidad)
           Beatrix Carrington, VP Marketing and Sales (Barbados)
           Paul Schutz, Chief Financial Officer (Trinidad)


GALICIA URUGUAY: Restarting Operations After Intervention
Banco Galicia Uruguay SA, a subsidiary of Argentina's Banco de
Galicia y Buenos Aires SA and whose operations were suspended
eight months ago amid the country's worsening financial crisis,
will reopen soon. A Dow Jones Newswires report cites an unnamed
company source saying that officials from Uruguay's Central Bank
said that if BGU asked permission to reopen, they would have no
problem accepting it. The bank has not yet filed a formal request
to reopen but will do so "within two weeks" - as soon as some
legal loose ends are tied up - the official said.

BGU was intervened by the Central Bank and had its operations
subsequently suspended after losing some US$500 million between
December 2001 and January 2002. BGU had about US$1 billion of
deposits, US$1.67 billion in assets and US$231 million in
shareholders equity as of Dec. 31. It has some 13,000 clients,
most of them Argentines.

Galicia's rescheduling proposal has been accepted by clients,
whose savings represent 80% of that amount, the source said.
The proposal commits the bank to returning the deposits within
nine years, with 3% of deposits returned to clients who signed up
to the deal as soon as Galicia's doors reopen.

The rest will come in annual payments, with 15% of deposits
returned in the first two years and 10% thereafter. Citing a
company press release, Dow Jones reports that, when the proposal
is approved, clients will receive a 2% fixed annual interest rate
on balances.

          Tte. Gral Juan D. Peron 407
          1038 Buenos Aires, Argentina
          Phone: +54-11-6329-0000
          Fax: +54-11-6329-6100
          Home Page:

          World Trade Center
          Luis A. Herrera 1248 Piso 22 Montevideo
          Tel.:(+598-2) 628-1230


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter Latin American is a daily newsletter
co-published by Bankruptcy Creditors' Service, Inc., Trenton, NJ,
and Beard Group, Inc., Washington, DC. John D. Resnick, Edem
Psamathe P. Alfeche and Ma. Cristina Canson, Editors.

Copyright 2002.  All rights reserved.  ISSN 1529-2746.

This material is copyrighted and any commercial use, resale or
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